Infrastructure Australia Scrutinizes $35 Billion Rail Loop Cost

The Suburban Rail Loop (SRL) project in Victoria, Australia, faces significant scrutiny after Infrastructure Australia reported that the project's cost estimates and benefits are overstated, posing a major risk to its viability. The report highlights the outdated $34.5 billion budget for the SRL East section and the lack of a detailed business case, prompting calls for a more rigorous assessment and an 'exit strategy' if the project becomes unfeasible. The federal government, which has committed $2.2 billion, demands explanations from the Victorian government, questioning how the remaining funding will be secured. Despite these concerns, Victorian officials defend the project, emphasizing their commitment to ongoing discussions with the federal body. The uncertainty surrounding construction costs, initially calculated in 2020, exacerbates the risk of cost blowouts, with Infrastructure Australia recommending halting additional funding until updated estimates and analyses are provided.